Waiting in the government for the price of the blue dollar.
News in development
While the Minister of Economy, Sergio Massa, tries to negotiate with the IMF and looks for dollars to increase the Central Bank’s reserves, the government closely follows the price of the blue dollar, which fell sharply on Monday on the first day of the dollar’s implementation, soybeans and came back on Tuesday.
Sergio Massa celebrated the agreement reached with the IDB, for which 1.2 billion dollars will enter
The Economy Minister said the financing package agreed in Washington “will allow Argentina to launch key programs in infrastructure, health, water and tourism”.
As financial dollars fall, more investors are encouraged to re-bet on pesos rates
Do you bet on the dollar or the pesos rate? It seems the eternal question of Argentine savers and investors. After the financial turmoil unleashed in mid-June, which generated a weight run in July, market variables began to normalize last month and investors slowly started to stop looking for hedges for a devaluation and to reposition themselves on instruments. in pesos.
With the relative stability of the exchange rate in August and the decline in financial dollars since the beginning of September, it seems that more and more investors are again being encouraged to do what is known as a “carry trade”. currency to underwrite investments in pesos., from fixed terms indexed to bonds following the CER, and with the result of this investment, buy back dollars in order to repeat the maneuver again. Read more here.
Due to inertia, tariffs and the dollar, September inflation will still be above 6%
Due to the inertia in August, the rate hike and the dollar rise, September inflation could close above 6%. This is a rate below the 7.4% peak reached in July, but still at very high levels, which continue to reflect the difficulties in containing the rise in prices, its impact on food and income.
In this sense, EcoGO expects an increase of 6.3% this month due to the brake on inflation in August (the official data of which will be known next Wednesday, but which consultants already estimate between 6 and 7%) and of increases in goods and services. The calculation is in line with the projection of food consumed at home in September, of 6.3%. Read more here.
Furore, doubts and criticism for the soybean dollar: the price of oilseeds has fallen again
The new special exchange rate for soybean exports makes its debut, generating a flurry of sales on the local market, but also showing some counter effects and raising doubts about the real beneficiaries of the measure. The first thing that was observed was a sharp drop in the value of the oilseeds. Since last Thursday, the September position has fallen from $ 380 per ton to $ 364 yesterday and again to $ 345 at today’s close in the Rosario futures market, while in Chicago the decline was much more contained, from 556 to 547. ton dollars.
Despite the drop in the dollar price, the value received in pesos showed a substantial improvement for producers, rising from 52,000 pesos per ton to around 70,000, which generated the highest daily sales volume since February 2017. According to the Stock Exchange. Rosario, between the new trading operations and the operations already carried out but with a price to be fixed yesterday, 796,000 tons of soybeans were registered, and today until the close of this note, according to the official SIOGranos monitor, they had sold another 600,000 tons. This morning the effect began to be felt on routes with over 1,000 trucks entering the ports of Rosario, 25 percent more than last week. Read more here.
Sergio Massa already has his Spring Plan for the dollar: selective devaluation
Economy Minister Sergio Massa talks with Ricardo Zúñiga at the US State Department.
The launch of the soybean dollar gave the Central Bank the ability to quickly raise around $ 1,000 million, a flurry of reserves that opened a window in an effort to calm expectations of an impending leap in devaluation.
Minister Sergio Massa announced the validity of a $ 200 dollar for the sale of soybeans (a 42% increase over the wholesaler) and the drop in free dollars was instantaneous.
The blue dollar, which fell to $ 270 on Monday, heralded the start of a new phase in the foreign exchange market with the impending spring when, seasonally, governments with no credit have difficulty in obtaining dollars because those in the agricultural sector are scarce. Read more here.
Source: Clarin
